[Congressional Record Volume 142, Number 91 (Wednesday, June 19, 1996)]
[Senate]
[Pages S6528-S6530]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mrs. BOXER (for herself and Mr. Bingaman):
  S. 1891. A bill to establish sources of funding for certain 
transportation infrastructure projects in the vicinity of the border 
between the United States and Mexico that are necessary to accomodate 
increased traffic resulting from the implementation of the North 
American Free Trade Agreement, including construction of new Federal 
border crossing facilities, and for other purposes; to the Committee on 
Environment and Public Works.


  the border infrastructure, safety, and congestion relief act of 1996

  Mrs. BOXER. Mr. President, I rise today to introduce the Border 
Infrastructure, Safety and Congestion Relief Act of 1996 with Senator 
Bingaman of New Mexico.
  When the Senate debated the North American Free Trade Agreement, I 
opposed it on the grounds that the United States was unprepared for its 
impact on our environment, infrastructure, and labor relations. In fact 
our Mexican border States face trying to handle the increased traffic 
from NAFTA in less time than it takes to design, review and construct 
major highway projects.
  Now that NAFTA is a reality, however, I am determined to make it work 
to California's best advantage.
  Whatever its shortcomings, NAFTA has increased trade across our 
borders. However, this trade boom now threatens to overwhelm residents 
and businesses in the border region of San Diego and Imperial Counties. 
In California's border community of Otay Mesa, my colleagues, you can 
see that the new global economy is choking old city streets.
  To get a good idea of the problem, you need look no further than Otay 
Mesa Road.
  Just a few miles up the road is the Otay Mesa Port of Entry. Serving 
a border region of over 4 million people, it is the third-busiest truck 
crossing on the United States-Mexico border and the only commercial 
crossing facility linking San Diego and Tijuana. The number of trucks 
crossing annually at Otay Mesa has increased from 668,000 in 1993 to 
more than 1.5 million today. Daily traffic is expected to double again 
by the year 2010.
  The Otay Mesa Port is connected to the U.S. Interstate Highway System 
by this one city street, which narrows to two lanes before reaching 
Interstate 905. Otay Mesa Road already carries traffic that is three 
times its design capacity.
  In Imperial County the situation is similar, if slightly less 
intense. The Calexico/Mexicali Port of Entry serves a regional 
population of 1 million. The border crossing opens on to a two-lane 
road with no shoulders, which is expected to carry truck, car and bus 
traffic through the heart of Calexico.
  Between Otay Mesa and Calexico, construction is beginning on a new 
Federal border port of entry at Tecate. The U.S. Department of 
Transportation is providing no direct funding to link any of these 
stations with the regional road networks.
  The California Transportation Commission recently approved shifting 
$244 million from other transportation projects in the State to the 
border region as a down payment on about $1 billion in needed 
infrastructure improvements to serve commercial vehicle traffic 
crossing the California-Mexico border.
  The State of California is doing its share. Now, State transportation 
officials are demanding Federal assistance--over and above the State's 
current Federal highway funding--to help pay for these border 
improvements.
  That is why Senator Bingaman and I are introducing the Border 
Infrastructure, Safety and Congestion Relief Act of 1996.
  Our bill provides a two-level system for Federal assistance to fund 
the States' top-priority border infrastructure projects:
  First, it establishes a $500 million Border Infrastructure Trust Fund 
to provide grants by the Secretary of Transportation to the States in 
order to pay for new or upgraded connections to the National Highway 
System.
  States could also be reimbursed for projects that have begun any time 
since 1994, when NAFTA was implemented. This means that California 
would not be penalized for putting its State money up early to prepare 
for NAFTA with projects such as the new inspection station at Otay 
Mesa.
  We also allow provide up to $10 million, if needed, for the Attorney 
General to use to provide transportation improvements for the Border 
Patrol

[[Page S6529]]

and other law enforcement agencies. I believe that we should do more at 
the border to deter drug smuggling and illegal immigration. My bill 
will provide important help in funding access roads, lighting, and 
other transportation improvements needed by our Federal law enforcement 
agencies.
  The second part of our bill would authorize Federal loan guarantees 
to assist the States in financing major construction of high-cost, 
revenue-producing projects, such as toll roads. The assistance is 
provided through the State Infrastructure Bank pilot program, 
established under the National Highway System Designation Act of 1995. 
Our bill, however, would authorize new Federal funds to finance border 
infrastructure projects.
  The final part of the bill authorizes Federal assistance to railroad 
projects in the border region which are intermodal and will provide 
traffic congestion relief by providing a rail alternative for freight 
shipments. These loan guarantees for railroad improvements would be 
provided under the Railroad Revitalization and Regulatory Reform Act of 
1976.
  This assistance is critical to San Diego's efforts to reopen the 
eastern extension of the San Diego & Arizona Eastern Railway. Extending 
this railroad across southeastern California will provide a critical 
link to the U.S. national rail network. By providing fast and efficient 
service to new markets throughout Mexico, it is also San Diego's best 
opportunity to take advantage of NAFTA. Trade with Mexico's interior 
offers the San Diego region its greatest opportunity to take full 
advantage of NAFTA. But this cannot happen without good, dependable 
rail service.
  In today's post-cold-war global marketplace, the competition is 
economic. America's place in the world will be determined largely by 
our ability to produce and market goods and services and deliver them 
efficiently into that global marketplace.
  I have been working with the San Diego House delegation, local 
elected officials, and members of the community to make Washington pay 
much greater attention to our infrastructure needs at the border. The 
San Diego Association of Governments, the four-State Border Trade 
Alliance business group and the Greater San Diego Chamber of Commerce 
have endorsed my legislation.
  I ask unanimous consent that the bill be printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1891

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Border Infrastructure Safety 
     and Congestion Relief Act of 1996''.

     SEC. 2. FINDINGS.

       Congress finds that--
       (1) although the United States Customs Service has 
     collected increased duties, merchandise fees, and revenues 
     from other commerce-related activities because of the 
     approval and implementation of the North American Free Trade 
     Agreement, these increased revenues have not been accompanied 
     by Federal funding for improving transportation facilities 
     along the international borders of the United States to 
     ensure the free and safe flow of trade destined for all 
     States and regions of the United States;
       (2) because of NAFTA, all 4 States along the United States-
     Mexico border will require significant investments in highway 
     infrastructure capacity and motor carrier safety enforcement 
     at a time when border States face extreme difficulty in 
     meeting current highway funding needs;
       (3) the full benefits of increased international trade can 
     be realized only if delays at the borders are significantly 
     reduced; and
       (4) the increased revenues to the general fund of the 
     Treasury described in paragraph (1) should be sufficient to 
     provide Federal funding for transportation improvements 
     required to accommodate NAFTA-generated traffic, in an amount 
     above and beyond regular Federal transportation funding 
     apportionments.

     SEC. 3. DEFINITIONS.

       In this Act:
       (1) Border region.--The term ``border region'' means the 
     region located within 60 miles of the United States border 
     with Mexico.
       (2) Border state.--The term ``border State'' means 
     California, Arizona, New Mexico, and Texas.
       (3) Fund.--The term ``Fund'' means the Border 
     Transportation Infrastructure Fund established under section 
     4(g).
       (4) NAFTA.--The term ``NAFTA'' means the North American 
     Free Trade Agreement.
       (5) Secretary.--The term ``Secretary'' means the Secretary 
     of Transportation.

     SEC. 4. DIRECT FEDERAL ASSISTANCE FOR BORDER CONSTRUCTION AND 
                   CONGESTION RELIEF.

       (a) In General.--Using amounts in the Fund, the Secretary 
     shall make grants under this section to border States that 
     submit an application that demonstrates need, due to 
     increased traffic resulting from the implementation of NAFTA, 
     for assistance in carrying out transportation projects that 
     are necessary to relieve traffic congestion or improve 
     enforcement of motor carrier safety laws.
       (b) Grants for Connectors to Federal Border Crossing 
     Facilities.--The Secretary shall make grants to border States 
     for the purposes of connecting, through construction or 
     reconstruction, the National Highway System designated under 
     section 103(b) of title 23, United States Code, with Federal 
     border crossing facilities located in the United States in 
     the border region.
       (c) Grants for Weigh-in-Motion Devices in Mexico.--The 
     Secretary shall make grants to assist border States in the 
     purchase, installation, and maintenance of weigh-in-motion 
     devices and associated electronic equipment that are to be 
     located in Mexico if real time data from the devices is 
     provided to the nearest United States port of entry and to 
     State commercial vehicle enforcement facilities that serve 
     the port of entry.
       (d) Grants for Commercial Vehicle Enforcement Facilities.--
     The Secretary shall make grants to border States to 
     construct, operate, and maintain commercial vehicle 
     enforcement facilities located in the border region.
       (e) Limitations on Expenditures of Funds.--
       (1) Cost sharing.--A grant under this section shall be used 
     to pay the Federal share of the cost of a project. The 
     Federal share shall be 80 percent.
       (2) Allocation among states.--
       (A) In general.--For each of fiscal years 1998 through 
     2001, the Secretary shall allocate amounts remaining in the 
     Fund, after any transfers under section 5, among border 
     States in accordance with an equitable formula established by 
     the Secretary in accordance with subparagraphs (B) and (C).
       (B) Considerations.--Subject to subparagraph (C), in 
     establishing the formula, the Secretary shall consider--
       (i) the annual volume of international commercial vehicle 
     traffic at the ports of entry of each border State as 
     compared to the annual volume of international commercial 
     vehicle traffic at the ports of entry of all border States, 
     based on the data provided in the most recent report 
     submitted under section 8;
       (ii) the percentage by which international commercial 
     vehicle traffic in each border State has grown during the 
     period beginning on the date of enactment of the North 
     American Free Trade Agreement Implementation Act (Public Law 
     103-182) as compared to that percentage for each other border 
     State; and
       (iii) the extent of border transportation improvements 
     carried out by each border State during the period beginning 
     on the date of enactment of the North American Free Trade 
     Agreement Implementation Act (Public Law 103-182).
       (C) Minimum allocation.--Each border State shall receive 
     not less than 5 percent of the amounts made available to 
     carry out this section during the period of authorization 
     under subsection (i).
       (f) Eligibility for Reimbursement for Previously Commenced 
     Projects.--The Secretary shall make a grant under this 
     section to a border State that reimburses the border State 
     for a project for which construction commenced after January 
     1, 1994, if the project is otherwise eligible for assistance 
     under this section.
       (g) Border Transportation Infrastructure Fund.--
       (1) Establishment.--There is established in the Treasury of 
     the United States the Border Transportation Infrastructure 
     Fund to be used in carrying out this section, consisting of 
     such amounts as are appropriated to the Fund under subsection 
     (i).
       (2) Expenditures from fund.--
       (A) In general.--Subject to subparagraph (B), upon request 
     by the Secretary, the Secretary of the Treasury shall 
     transfer from the Fund to the Secretary such amounts as the 
     Secretary determines are necessary to make grants under this 
     section and transfers under section 5.
       (B) Administrative expenses.--An amount not exceeding 1 
     percent of the amounts in the Fund shall be available for 
     each fiscal year to pay the administrative expenses necessary 
     to carry out this section.
       (h) Applicability of Title 23.--Title 23, United States 
     Code, shall apply to grants made under this section.
       (i) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Fund to carry out this section and 
     section 5 $125,000,000 for each of fiscal years 1998 through 
     2001. The appropriated amounts shall remain available for 
     obligation until the end of the third fiscal year following 
     the fiscal year for which the amounts are appropriated.

     SEC. 5. CONSTRUCTION OF TRANSPORTATION INFRASTRUCTURE FOR LAW 
                   ENFORCEMENT PURPOSES.

       At the request of the Attorney General, the Secretary may 
     transfer, during the period consisting of fiscal years 1998 
     through 2001, up to $10,000,000 of the amounts from the Fund 
     to the Attorney General for the

[[Page S6530]]

     construction of transportation infrastructure necessary for 
     law enforcement in border States.

     SEC. 6. BORDER INFRASTRUCTURE INNOVATIVE FINANCING.

       (a) Purposes.--The purposes of this section are--
       (1) to encourage the establishment and operation of State 
     infrastructure banks in accordance with section 350 of the 
     National Highway System Designation Act of 1995 (109 Stat. 
     618; 23 U.S.C. 101 note); and
       (2) to advance transportation infrastructure projects 
     supporting international trade and commerce.
       (b) Federal Line of Credit.--Section 350 of the National 
     Highway System Designation Act of 1995 (109 Stat. 618; 23 
     U.S.C. 101 note) is amended--
       (1) by redesignating subsection (l) as subsection (m); and
       (2) by inserting after subsection (k) the following:
       ``(l) Federal Line of Credit.--
       ``(1) Definitions.--In this subsection, the terms `border 
     region' and `border State' have the meanings provided in 
     section 3 of the Border Infrastructure Safety and Congestion 
     Relief Act of 1996.
       ``(2) Authorization of appropriations.--There is authorized 
     to be appropriated from the general fund of the Treasury 
     $100,000,000 to be used by the Secretary to make lines of 
     credit available to--
       ``(A) border States that have established infrastructure 
     banks under this section; and
       ``(B) the State of New Mexico which has established a 
     border authority that has bonding capacity.
       ``(3) Amount.--The line of credit available to each 
     participating border State shall be equal to the product of--
       ``(A) the amount appropriated under paragraph (2); and
       ``(B) the quotient obtained by dividing--
       ``(i) the contributions of the State to the Highway Trust 
     Fund during the latest fiscal year for which data are 
     available; by
       ``(ii) the total contributions of all participating border 
     States to the Highway Trust Fund during that fiscal year.
       ``(4) Use of line of credit.--The line of credit under this 
     subsection shall be available to provide Federal support in 
     accordance with this subsection to--
       ``(A) a State infrastructure bank engaged in providing 
     credit enhancement to creditworthy eligible public and 
     private multimodal projects that support international trade 
     and commerce in the border region; and
       ``(B) the New Mexico Border Authority;
     (each referred to in this subsection as a `border 
     infrastructure bank').
       ``(5) Limitations.--
       ``(A) In general.--A line of credit under this subsection 
     may be drawn on only--
       ``(i) with respect to a completed project described in 
     paragraph (4) that is receiving credit enhancement through a 
     border infrastructure bank;
       ``(ii) when the cash balance available in the border 
     infrastructure bank is insufficient to pay a claim for 
     payment relating to the project; and
       ``(iii) when all subsequent revenues of the project have 
     been pledged to the border infrastructure bank.
       ``(B) Third party creditor rights.--No third party creditor 
     of a public or private entity carrying out a project eligible 
     for assistance from a border infrastructure bank shall have 
     any right against the Federal Government with respect to a 
     line of credit under this subsection, including any guarantee 
     that the proceeds of a line of credit will be available for 
     the payment of any particular cost of the public or private 
     entity that may be financed under this subsection.
       ``(6) Interest rate and repayment period.--Any draw on a 
     line of credit under this subsection shall--
       ``(A) accrue, beginning on the date the draw is made, 
     interest at a rate equal to the current (as of the date the 
     draw is made) market yield on outstanding, marketable 
     obligations of the United States with maturities of 30 years; 
     and
       ``(B) shall be repaid within a period of not more than 30 
     years.
       ``(7) Relationship to state apportionment.--Funds made 
     available to States to carry out this subsection shall be in 
     addition to funds apportioned to States under section 104 of 
     title 23, United States Code.''.

     SEC. 7. RAILROAD REHABILITATION AND IMPROVEMENT PROGRAM.

       (a) Purpose.--The purpose of this section is to provide 
     assistance for freight rail projects in border States that 
     benefit international trade and relieve highways of increased 
     traffic resulting from NAFTA.
       (b) Issuance of Obligations.--The Secretary shall issue to 
     the Secretary of the Treasury notes or other obligations 
     pursuant to section 512 of the Railroad Revitalization and 
     Regulatory Reform Act of 1976 (45 U.S.C. 832), in such 
     amounts, and at such times, as may be necessary to--
       (1) pay any amounts required pursuant to the guarantee of 
     the principal amount of an obligation under section 511 of 
     the Act (45 U.S.C. 831) for any eligible freight rail project 
     described in subsection (c) during the period that the 
     guaranteed obligation is outstanding; and
       (2) during the period referred to in paragraph (1), meet 
     the applicable requirements of this section and sections 511 
     and 513 of the Act (45 U.S.C. 832 and 833).
       (c) Eligibility.--Assistance provided under this section 
     shall be limited to those freight rail projects located in 
     the United States that provide intermodal connections that 
     enhance cross-border traffic in the border region.
       (d) Limitation.--Notwithstanding any other provision of 
     law, the aggregate unpaid principal amounts of obligations 
     that may be guaranteed by the Secretary under this section 
     may not exceed $100,000,000 during any of fiscal years 1998 
     through 2001.
       (e) Authorization of Appropriations.--There are authorized 
     to be appropriated to make loan guarantees under this section 
     $10,000,000 for each of fiscal years 1998 through 2001.

     SEC. 8. REPORT.

       (a) In General.--The Secretary shall annually submit to 
     Congress and the Governor of each border State a report 
     concerning--
       (1) the volume and nature of international commercial 
     vehicle traffic crossing the border between the United States 
     and Mexico; and
       (2)(A) the number of international commercial vehicle 
     inspections conducted by each border State at each United 
     States port of entry; and
       (B) the rate of out-of-service violations of international 
     commercial vehicles found through the inspections.
       (b) Information Provided by United States Customs 
     Service.--For the purpose of preparing each report under 
     subsection (a)(1), the Commissioner of Customs shall provide 
     to the Secretary such information described in subsection 
     (a)(1) as the Commissioner has available.
                                 ______